Why is it that the preferred stockholders’ equity section of the balance sheet changes only when new shares are sold or repurchased, whereas the common stockholders’ equity section changes from year to year regardless of whether new shares are bought or sold?

Question

Why is it that the preferred stockholders’ equity section  of the balance sheet changes only when new shares are sold or repurchased, whereas the common stockholders’ equity section changes from year to year regardless of whether new shares are bought or sold?

Why is it that the preferred stockholders' equity section of the balance sheet changes only when new · Answer

Why is it that the preferred stockholders' equity section of the balance sheet changes only when new shares are sold or repurchased, whereas the common stock-holders' equity section changes from year to year regardless of whether new shares are bought or sold?